Home / Money / Personal Finance /  Mutual fund calculator: Monthly SIP you need to accumulate 5.5-cr by age 45

Mutual fund calculator: Vijay Kumar Virnave is a 24-year old professional and his monthly take home salary is near 35,000. He is planning to start an investment from next financial year that would enable him create 5.5 crore corpus when he turns 45-year old. However, his risk appetite is not that much high and he don't want to invest directly in stock market.

Speaking on an ideal investment tool that would enable Vijay to meet his investment goal; Kartik Jhaveri, Director - Investments at Transcend Capital said, "As Vijay is 24 year old today and he is planning for new investment from next financial year, it means Vijay want to accumulate 5.50 crore in 20 years. As he is not interested in direct stock market investment, equity mutual funds would be an ideal choice for an investor like Vijay. In such long term mutual funds investment, he can expect around 15 per cent mutual funds interest rate on his money."

Advising Vijay to keep on increasing one's monthly SIP using annual SIP step-up; SEBI registered tax and investment expert Jitendra Solanki said, "Vijay has an ambitious target of 5.50 crore in 20 years. So, I would advise investor like him to keep on increasing monthly SIP amount with increase in annual income. As he is a salaried profession, he can expect his income to grow annual by at least 10 per cent. However, his investment goal is slightly ambitious, so I would advise him to maintain 15 per cent annual SIP step-up and get compounding benefit on one's money.

15 X 15 X 15 rule of mutual funds

Jitendra Solanki advised SIP investors to remember 15 X 15 X 15 rule of mutual funds, where an investor can expect to get 15 per cent return investing 15,000 for 15 years. However, to achieve 5.50 crore investment goal, he advised 15 per cent SIP step-up and increase the time-horizon to 20 year.

Mutual fund return calculator

Assuming 15 per cent return on 15,000 monthly SIP for 20 years maintaining annual SIP step-up of 15 per cent, mutual fund SIP calculator suggests that one would get around 5.55 crore maturity amount. That means, Vijay can hope to achieve 5.50 crore investment goal following this mutual funds investment strategy.

Source: piggy mutual fund SIP calculator
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Source: piggy mutual fund SIP calculator

Mutual fund SIP calculator suggests that following the above mentioned mutual funds investment strategy, Vijay will get 5,55,94,043 maturity amount, which is slightly higher than his investment goal of 5.50 crore.


Asit Manohar

Chief Content Producer at Live Mint Digital Team
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